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October 1, 2016

There was heavy FII buying which took stock from 52 week low in June’15 to 52
week high in Aug’15. After failure to get the payment bank license, the stock
collapsed to near 52 week low same month i.e. in Aug’15. In general, the market
favor stocks in which FII buying is evident. This data is available every
quarter when companies declare their shareholding pattern. An increase in
FII holding means FII buying was active during last quarter.
As an investor, this information is of no use as the game may be already over.

Before we proceed, i would like to clarify one of the biggest misconceptions
about FII buying. Though the traders are aware of this fact but still not
known to many. You must have read the news reports or watched on TV channels
that FII bought +300 Crores or FII sold -250 Crores. Normally investor
considers it as a gross no’s but fact of the matter is that these no’s
are net value i.e. Buy value minus Sell value. For example, if today FII’s
bought securities worth Rs 2000 Cr and sold Rs 1600 Cr. In this case, the
FII figure reported in media will be +400 Cr. In short, on net basis FII
buying was Rs 400 Cr which is a positive signal. On the contrary if FII
buying is Rs 2500 Cr and selling at Rs 3000 Cr then FII fig is -500 Cr
i.e. on net basis FII selling was -500 Cr which is a negative signal.
Therefore, point i am trying to make is that if FII reported fig is
negative then it doesn’t mean that FII buying has stopped. On a net basis,
they might be selling which is negative but they are still buying which is
subdued buying.

this quarter the profit decreased because of interest (yearly) and tax as
per pervious years balance sheet and the delay in posting the march
quarter result. which created panic
among the investors to sell. company has a good fundamentals.

cash reserves and compare the debt. (debt / cash reserves - 0.57) which is very good.
(cash reserves / total shares) - 24.5rs. its should at least at this price as per fundamentals.

one can buy and hold for decent gains from here for a target of 22 - 23 possibly.

September 20, 2016

RCOM has announced the merger of its wireless business with that of Aircel.
RCOM and Aircel’s parent Maxis will hold 50% each in the merged company
(MergedCo) which has 12% combined revenue market share. RCOM will transfer
Rs 200 bn debt to the MergedCo which will have debt/equity of 1x.
Management is expected to share the financials and operating metrics
of the MergedCo closer to consummation of the deal. Thedevelopment
will drive market share gains and scale efficiencies in the future.

J Kumar Infraprojects’ (JKIL) Q1FY17 revenue, at INR 4bn, spurted 11% YoY with
work picking up in flyover projects in the Mumbai region. EBITDA margin stood
at 16.9% YoY (down 164bps YoY). With capital costs remaining in control, PAT
rose 16% YoY to INR 295mn. The company has formally received the much-delayed
Mumbai Metro Line 3 (INR 50bn) and Line 7 (INR 3.6bn) projects, while agreement
signing for Line 2A project (INR 13.5bn) is expected shortly. Ground work on
all the 3 metro projects has already started. Delays in award of the metro
projects and our conservative stance on execution ramp up results in 4%/7% cut
in FY17/18E earnings. However, we believe JKIL remains one of the best bets in
the EPC space owing to strong revenue visibility (book-to-bill at 7x), healthy
balance sheet (net debt:equity at 0.1x) and attractive valuations
(trading at 6.5x FY18E P/E). Maintain 'BUY' with revised target price
of INR 372 (INR 400 earlier).

September 19, 2016

buy pnb because npa recovery drive goes very strong in public sector bank

this stock has great potential in psu banks buy it in huge quantity

State-owned Punjab National Bank has roped in Indian test skipper Virat Kohli
as brand ambassador to improve its image which has taken a hit due to rising bad loans.
On the occasion Kohli said 'PNB is Mera Apna Bank' as he has been an account holder of
the bank since the age of 16 years. "Today PNB is seen as a complete universal bank. Virat Kohli,
an energetic young sportsman having mass appeal to the youth of our country has been chosen as
brand ambassador who comes with qualities like determination, focus and for whom winning is a habit,
" the bank said in a statement. Since its inception in 1895, it said, PNB has been people's bank serving
millions of customers throughout India. Over the years, PNB has grown from strength to strength
and has established itself as a major player in Indian banking space, it said, adding,
the bank has remained a trusted name in banking, attending to all the segments of the society.
For the first quarter ended June, the bank's profit declined by a 58 per
cent to Rs 306 crore on account of mounting bad loans. During the quarter,
provision towards non-performing assets (NPAs) have jumped almost three-fold to Rs 3,620 crore
from Rs 1,291 crore in the same period a year ago. The Gross NPAs rose significantly to 13.75 per
at the end of June 2016, from 12.9 per cent in the year-ago period. The net NPAs too rose to 9.16
per cent against 8.61 per cent in June 201
5. In absolute terms, the gross NPAs of the bank more than doubled to Rs 56,654.09 crore from the year-ago levels.